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m2ima2mishtshapm
m2ima2mishtshapm m2ima2mishtshapm
  • 28-04-2016
  • Business
Answered

When does it make sense for government to interfere with a pure market outcome?

Verified Answer :

taskmasters
taskmasters taskmasters
  • 05-05-2016

There are several situations when the government has to interfere with a pure market outcome. If the price of a product rises without any significant cause or if there is more supply than demand of a market, then the government can put a price ceiling or floor price of a product. This is purely to keep the economy of a country or state stable.

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